Indonesia’s central bank has approved new regulations that will restrict credit card issuance to combat the country’s mounting card debt.
Under the regulations from Bank Indonesia, which take effect at the end of January, citizens who earn less than 10 million rupiah (US$3.2 million or 2.5 million euros) per month may not own more than two credit cards. And separate institutions must issue the cards.
Banks must individually assess any applicants who make more than 10 million rupiah, and consumers may not use credit cards to purchase cars or houses, the central bank said. Cardholders also must be at least 21 years old, the bank said.
The Indonesian central bank in November indicated its plans to place stricter limits on credit card issuance (
According to the central bank, Indonesian credit card issuance grew to 14.6 million cards at the end of 2011 from 12 million two year earlier.
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